Calculating the TCO of moving SAP workloads to cloud

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TCO SAP workloadsAs I was leaving our local movie theater on a recent day out with my family, my daughter noticed that I looked annoyed. She asked what was wrong. I decided not to say what I was really thinking: that’s two hours and $30 we’d never get back.

This made me think about all the other small investments we make, and then the bigger things, which ultimately reminded me of a question I get asked regularly when talking to clients: how can I assess the benefits of moving to cloud and managed services before making the investment?

Moving to the cloud can affect the bottom line. It can be hard to justify the total cost of ownership (TCO) up front when you don’t have a clear understanding of what the key tangible and intangible benefits might be, especially when moving ERP applications to the cloud. Fortunately, there are tools that can help you assess the net incremental revenue benefits of getting services to market faster.

One of those tools is the Cost Benefits Estimator, which helps organizations look at managed infrastructure, including those designed specifically SAP workloads. The results are based on third-party validated financial metrics and justification models.

How does it work?

It’s a self-driven tool that asks a few basic questions such as:

  • How many servers will be moved to the cloud?
  • How many full-time equivalent headcounts are required to support your current infrastructure and applications?
  • What industry are you in?
  • How many customers do you have?
  • What are the key drivers? (To increase customer reach? Improve time to market? Other factors?)

By answering these questions, the tool can help organizations estimate annual savings based on their environments. It can help them determine the numeric value of infrastructure savings. For example, it enables comparisons between the costs of SAP support labor costs for the current environment versus managed services on the IBM cloud infrastructure.

Wherever you decide to invest your time and money, tools like these can help spur wiser investments. As Lynda Stadtmueller, vice president of cloud computing services with Stratecast-Frost & Sullivan, wrote in a recent blog post, “Whether you are in the information or finance organization, the smartest technology investment is the one that delivers maximum value to the business.”

Calculate your estimated annual savings from an investment in IBM cloud managed services by trying the Cost Benefits Estimator for SAP Applications. You can also try it for non-SAP applications. It takes no more than 15 to 20 minutes to see your results.

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